Page 20 - Bullion World Volume 4 Issue 7 January 2024_Neat
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Bullion World | Volume 4 | Issue 7 | July 2024



































                            Mr Bart Melek                                   Ms Rhona O’Connell

           Coming to Mr Bart, what is the macro view at TD    Ms Nicky Shiels - Ms Rhona, what is your view on
           securities regarding the fed rate cuts, do you think   the demand of central banks buying in the times to
           the higher for longer will continue and how will this   come?
           pair with the gold price?                          Ms Rhona O’Connell, The short term answer to this
           Mr Bart Melek, Regarding the call for the fed which   takes us back to Friday which was related to Thursdays
           is not speculative anymore. At this point just after the   prevailing prices, by the time the states opened the
           payrolls we speculate that the cut cycle is set to start   sentiment already pervaded the market which resulted
           from September onwards which makes it three cuts for   in fall which we witnessed. There were also concerns
           the year. We see a decline in the fed funds rate to about   relating to the central bank activity. If we look at the
           250 basis points that will take us into the year 2025. Well   international monetary fund’s there are no changes
           the USD is still pretty exceptional and we know there are   recorded for several months but then there is a sudden
           talks about the dollar on the brink of a collapse, however   change within a given month which is considered as a
           this can be a lower grind rather than a collapse, over   pattern. The large acquisitions by the official sector can
           the next decade. We can see an erosion of purchasing   be seen as a hint given to the rest of us which shows the
           power but it cannot be steep collapse.             kind of political instability and banking risks.





                                                              Ms Nicky Shiels – Mr Nicholas, can you tell us about
                                                              the flows in Australia especially the secondary
                                                              scrap and producer selling?
                                                              Mr Nicholas Frappell, Global Head of Institutional
                                                              Markets, ABC Refinery – In regards to producer selling
                                                              and hedging which is still out of fashion in Australia, one
                                                              important thing which we noticed during the run-up of
                                                              gold prices we saw very few secondary material was
                                                              coming out of the Asian markets. Coming to the USD
                                                              exceptionalism which we are going with accordance to
                                                              we can see other central banks pivot and cut rates faster
                                                              than the fed to position themselves in a better way.




                         Mr Nicholas Frappell


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